Swoozie’s files for bankruptcy
Swoozie’s, the gift and stationery store chain, filed for bankruptcy on March 3. Citing their ill-considered acquisition of 13 Blue Tulip stores in the northeast as a contributing factor to their demise, the Atlanta-based chain reportedly owns 43 stores in 15 states.
The bankruptcy of Swoozie’s is just another example of how venture capitalists have failed to understand the dynamics of the personalized stationery business. Why Swoozie’s acquired the failed Blue Tulip stores (also in bankruptcy) last year remains a mystery. Nevertheless, I suspect that there was some form of finacial chicanery or tax play involved since both companies are owned by private equity firms. As the financial crisis has taught us all: greedy financial wizardry lasts as long as the merry-go-round continues to go round. I for one extend my heartfelt sympathy to each and everyone of the 350 Swoozie’s employees who have lost their job.
The fine stationery industry is in a crisis: there is simply too much product chasing a finite market. Companies who seek to extend their distribution channels either physically or digitally will only compound the problem and most will fail. I don’t have the answer, but what I see happening doesn’t augur well for the future of our industry. It takes very bold leadership to back the “slow stationery” movement and continue to produce beautiful papers while other others are compromising standards to remain price-competitive. Frankly, I don’t see much value in chasing the The Taylor companies down the price chain. They are even beginning to make “Made in China” look good.
Richard May
Founding Member Stationers Guild